Quick: what is your life expectancy?

Do you know?  Click here for a check as to your life expectancy based on your individual habits and family history, which will be different from the normal actuarial tables.

As you can see, if you take care of yourself (don’t smoke, aren’t overweight, eat a semi-intelligent diet, etc) you will live past 80 according to the government.  And we all know that SSA uses these tables to calculate the cost of benefits to the government, and the government never assumes low on the actual cost of stuff do they?  And there may be one or two medical advances in the pipe that could let you live longer.

So if you believe in numbers, it is pretty obvious that that term insurance you are considering buying will probably disappear before you do.  So should you not buy it?

FAIL!  WRONG ANSWER!  Buy the term insurance, because you need the coverage to make sure that your goals and dreams come true in case you shuffle off this mortal coil.

But…..

You might want some permanent coverage as part of your insurance program, as the probability is that you WON’T die before the term expires and as such should have some of the whole life coverage that will be there for your whole life.  Over a period of several decades it is actually much more cost effective than the term insurance too, so is a smart move.  The numbers bear it out: over an extended period, permanent insurance is the most cost effective way to own your insurance.

So look at the math people before you make your decision on life insurance: it might take several decades, but eventually you will see what is the best deal.